If you are looking into commercial real estate to purchase or to lease, you will want to familiarize yourself with the different types of commercial real estate properties that are available. It may seem daunting at first, however, we can help you choose the right commercial real estate space for you. In this article, we will cover the four major types of commercial real estate.
Below is a brief overview of the four major commercial real estate property types on the market. It is important to keep in mind that each category briefly mentioned below, can be broken down even further into subcategories. Every business will want to independently conduct their own research. Local zoning departments are also a great tool and can inform you if your business will be allowed at a specific location.
Retail properties are one of the most identifiable and easiest property types to recognize. Many of us interact with them frequently. They are essentially the buildings that house businesses that sell goods or services. This includes strip malls, grocery stores and even fast food restaurants. The idea behind retail spaces is that a customer can come and buy the product or engage in the services directly with the company. Retail spaces are typically highly visible with signage on their individual units and on pylon signs because stores want to attract customers to engage in business.
If you are looking for this type of direct engagement with your customer and want a welcoming environment, you will want to consider a retail space. You will also usually have the added benefit of being surrounded by other businesses to attract more customers. These spaces are typically built out for the current tenant already in place at a facility.
The next recognizable commercial real estate type is office space. Office buildings are great for businesses that do not necessarily need to interact with large volumes of clients at a time. Essentially an office may be a good fit for a business with minimal foot traffic. One major exception would be medical offices such as doctors, physical therapists, etc. Office buildings are great for companies looking to conduct their business in a professional setting.
Offices can have an array of layouts including everything from an open concept to multiple rooms or cubicles for more privacy. These structures are designed with businesses in mind. The versatility is abundant in office buildings. They can have the functionality to be beneficial for an individual running their business on their own, and they are also flexible and structured in such a way that they can also support large teams in corporations. In fact, offices are great options for businesses with multiple employees such as a tech company or a law firm.
It is vital to keep in mind that there are usually multiple companies in an office building, however, there are always exceptions. Businesses will want to take into consideration the type of visibility they want for their business. Some office buildings have overt signage and some may have minimal opportunities for physical exposure for your business.
Industrial properties are great for businesses who do not need a traditional space as mentioned above. These types of properties should not be underestimated as they impact the economy on a small and large scale. Industrial properties are made up of warehouse spaces and typically have overhead doors so trucks can bring shipments in and out of the space. They usually are not as visible as retail spaces but can still function as spaces where customers can come to interact with your business.
Industrial spaces are great options for businesses that need a workshop or large storing area for merchandise or products. Examples of business types that may want industrial space include cabinetry, welding, landscaping, and e-commerce. Many businesses that lease out industrial space are hands on with their work within their space. Some even create, package, and ship their products right from their unit.
Industrial warehouses can have a completely open layout with just warehouse space or they can include offices and bathrooms. Some facilities may also have shared restrooms. The front entrance of the warehouse can also vary depending on the style you are looking for (including a window entrance, etc.). Industrial properties can have a single tenant that utilizes a whole building or it can have multiple tenants within one structure. In this multi-tenant scenario, each tenant would have their own individual unit. You will want to consider this if you are interested in having a building to yourself, or if you want the opportunity to collaborate with other similar business types.
Multifamily properties are typically classified as being commercial if there are more than four individual units that are used as separate residences. You are probably familiar with many of them including apartments or dormitories. Investors often look into these types of properties as a possible commercial investment.
This is a general overview of the different types of commercial real estate properties that are available for investors, businesses, and/or anyone else interested in purchasing a building or leasing a space. Sunizo Superior Realty Management is a commercial property management company that oversees properties in Florida and Georgia.
If you are looking for commercial real estate, give us a call or email us and we will see if we can help you find a match:
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